re: Spending on film tax credits would pay tuition at LSU for 70,000 students

So what you are saying is that none of the state funds that are "paid" to the film industry comes back to the state in the form of taxes paid by employees' income or sales taxes and the businesses that support the industry also pay no taxes back to the state.

re: Spending on film tax credits would pay tuition at LSU for 70,000 students (Posted on 4/27/13 at 9:58 am to SlowFlowPro)

quote:the amount of spend in Louisiana increased by 30 percent from 2008-2010. LED estimates that production expenditures occurring in Louisiana reached $474.2 million in 2008; $361.5 million in 2009; and an estimated $674.1 million in 2010

quote:These expenditures produced an estimated annual total economic impact – also known as economic output or economic benefit – in Louisiana of approximately $812 million in 2008, $593 million in 2009, and $1.1 billion in 2010.

re: Spending on film tax credits would pay tuition at LSU for 70,000 students (Posted on 4/27/13 at 9:58 am to shawnlsu)

quote:So what you are saying is that none of the state funds that are "paid" to the film industry comes back to the state in the form of taxes paid by employees' income or sales taxes and the businesses that support the industry also pay no taxes back to the state.

theoretically this is the argument

i used to argue with the OP but the way our state handles the credits is shitty and almost assuredly a drain on the budget

re: Spending on film tax credits would pay tuition at LSU for 70,000 students (Posted on 4/27/13 at 10:04 am to SlowFlowPro)

quote:quote: Where would te money come from?

where does the money to pay 85% of the tax credits we offer them come from?

Most of the time they can sell them to private parties for more than 85% and the state does not have to buy them. For example Exxon may owe $10 million in state income taxes they will certainly be glad to pay a film operator $9.5 million for his $10 million in credits. See how it never gets in the budget??

re: Spending on film tax credits would pay tuition at LSU for 70,000 students (Posted on 4/27/13 at 10:07 am to I B Freeman)

Small potatoes but multiply it times thousands of liberal giveaways and you have significant dollars. Heck, considering the way they spent the stimulus money they would have been better off just giving 100k to every head of household.

re: Spending on film tax credits would pay tuition at LSU for 70,000 students (Posted on 4/27/13 at 10:09 am to I B Freeman)

It is clear few understand how this works. Additionally, those multipliers do not demonstrate a return of nearly 6 to 1 in tax revenue.

The state program says that it will offer 30 cents for every dollar of approved spending. This is no different than the state paying 30 cents for every dollar of a house construction or say operating a car dealership - aside from any differences in leftover assets from the said activity.

If this is so great, why not have the state go into the film business directly and underwrite it all? There would be a lot of jobs and economic activity. Taxes would surely be generated. In fact, let's just have the government subsidize all business.

There has to a strategy and purpose for subsidies. You spend a portion to capture something that otherwise would not develop. The subsidy should tip it over, not guarantee. It should not be permanent. It should pay off.

re: Spending on film tax credits would pay tuition at LSU for 70,000 students (Posted on 4/27/13 at 10:11 am to BBONDS25)

quote:Can you provide some numbers with your lecture?

It is simple math and easy to understand. Here is what you need to know.

1) the state will issue transferrable tax credits for 30% of a film productions expenses (35% if they are salaries of Louisiana residents). All expenses are eligible.

2) the state will redeem these credits at 85% cash. There has been a brokerage industry arise from this and most of the credits are actually sold to other taxpayers who have Louisiana tax liabilities.

You can go to the Louisiana Film tax website and read it for yourself.

Several states have fallen for this crap as even the legislators are so dumb to think this is like a more traditional economic development program. Several have also seen the light and are turning them back.

If you want to see advocates of these credits back up just ask them if they would support making them non transferrable. That way the owners of the film production company would have to generate taxes to use them. They all scream when that comes up and all that spin they put on economic out put goes out the window. They have powerful, rich lobbyist.